To form a sole proprietorship in West Virginia:
- Choose a business name and obtain a DBA
- Get an EIN from the IRS
- Register with the WV State Tax Department
- Get any required state or local licenses
- Understand tax obligations like sales tax
- File a business registration certificate
- Consult professionals to help decide between an LLC or sole proprietorship
Sole proprietorships don’t protect personal assets. LLCs do. Whether you choose an LLC or sole proprietorship depends on factors like business risk, liability, and future plans.
Does a sole proprietor need a business license in WV?
Whether you need a business license depends on many factors. Obtaining the necessary licenses ensures your business is operating legally and complying with state and local regulations. Depending on what you plan to sell and its location, determine which licenses apply. For example, if you plan to sell products from an online store, you may need a sales tax permit. Research state and local requirements to assess which approvals are required for your West Virginia sole proprietorship to operate compliant to regulations.
Although West Virginia doesn’t require sole proprietors to have a general business license, your planned business activities may mandate other permits. Check West Virginia’s business licensing portal to understand licensing stipulations for certain occupations and industries. Local business licensing necessities may also apply to sole proprietors, so also verify requirements with your city or county government. And remember, your business undertakings could require a federal license.
After researching West Virginia’s business registration certificate requirements for sole proprietors, focus on tax obligations. Sole proprietorships report income and expenses on owners’ personal tax returns. So you pay self-employment taxes like Social Security and Medicare. Consulting tax professionals can ensure fulfilling all IRS sole proprietor tax duties. They can also help decide if forming an LLC suits your business better. LLCs limit personal liability for debts and judgments that sole proprietors don’t.